Former Meta Executive Warns: AI Market "Very Likely" to See a Correction, Superintelligence Overhyped

Former Meta Executive Warns: AI Market "Very Likely" to See a Correction, Superintelligence Overhyped

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Behind the boom in artificial intelligence, bubble risks may be quietly building.

On October 16, according to media reports, former Meta executive Nick Clegg issued a warning that the likelihood of a market correction in the AI field is "quite high." At the same time, the former UK Deputy Prime Minister questioned the concept of "superintelligence," but believes that the technology itself will continue to develop and have a significant impact.

"Deals are happening almost every day, every hour. You certainly think, wow, this might be heading for a correction."

Clegg stated in a CNBC program that the current AI boom has already led to "incredibly crazy valuations," and a bubble may have formed, making a correction likely.

A typical feature of a bubble is bloated valuations, with company prices not matching their fundamentals. Clegg believes that the current reality facing the AI industry is: trading activity is unusually active, but the logic supporting these trades seems weak.

Whether the market can ultimately stabilize depends on the effectiveness of the business model. Clegg focused on the major cloud computing companies planning to invest hundreds of billions of dollars to build data centers. He noted that whether these companies can recoup their huge infrastructure investments and prove their business models are sustainable will be a key issue.

Superintelligence may not be "all-powerful"

Clegg also mentioned that the foundational paradigm the industry relies on may trigger some problems, specifically refuting the concept of superintelligence. This concept is usually defined as AI surpassing human intelligence. In contrast to artificial superintelligence is artificial general intelligence, where AI systems possess human-level capabilities. Clegg said:

Due to certain limitations with AI technology, this means it might not be as all-powerful as people say.

Many well-known tech leaders and investors support the idea of artificial superintelligence, including SoftBank founder Masayoshi Son and Meta CEO Mark Zuckerberg, who earlier this year created an AI lab to pursue this technology.

However, Clegg said that AI technology itself will still continue to develop and have an impact. He emphasized:

"But that does not mean the technology itself will not continue, will not flourish, or will not have a huge impact."

Risk Disclaimer and Limitation of LiabilityThe market has risks, and investment needs to be cautious. This article does not constitute personal investment advice, nor does it take into account the individual investment objectives, financial situations or needs of any particular user. Users should consider whether any opinions, views or conclusions in this article are appropriate for their particular circumstances. Investing accordingly is at your own risk. ```